China Environment Fund: Doing Well by Doing Good

Abstract

In early 2010, cleantech investment pioneer Tsing Capital was planning for the China Environment Fund IV and considering how to maintain its commitment to social and environmental practices. Tsing Capital embraced its philosophy of "Doing Well by Doing Good" and developed a proprietary system to manage social & environmental functions throughout the investment process. Some of the specific questions examined in the case are: with a more diversified investor base, how could the firm balance the different expectations of investors and continue to achieve "Doing Well by Doing Good"? Despite the increasing importance of social & environmental practices, they also had a cost for the firm and its portfolio companies. How could the firm most effectively motivate its portfolio companies to actively integrate social & environmental practices with their strategies?

This study investigates the role of national and organisational culture in day-to-day activities of multinational project teams, specifically focusing on differences between Chinese and Dutch project managers. We rely on fieldwork observation and interviews with representatives from a diverse set of organizations in China and the Netherlands. Analyses focus on the impact of cultural differences on five project management processes — (1) project planning, (2) cost and quality management, (3) risk management, (4) scope management and project promises, and (5) communication. Although there are many differences observed in these five processes, research subjects report no significant impact of cross-cultural collaboration on project performance. We conclude that cross-cultural project teams can provide critical elements for an effective combination of different project management practices: people from various national and organisational cultures, enriched by different experiences and management theories, with a mix of skills. This study provides insights for those who work cross culturally (especially between western and eastern contexts) and is also a contribution to both the project management and cross-cultural management literatures.

This case provides an opportunity to examine and discuss how a traditional Chinese private business was launched and developed into a globalizing, multi-industry corporation. It also highlights how second generation entrepreneurs successfully developed an innovative industry model to sustain a green and profitable business, how the company valued, motivated and retained its talent, and how Chinese private enterprise can go global.

We examine the heterogeneous effects of globalization on the interest rate setting by microfinance institutions (MFIs) around the world. We consider MFIs as a mechanism to overcome the institutional void of credit for small entrepreneurs in developing and emerging economies. Using a large global panel of MFIs from 119 countries, we find that social globalization that embraces egalitarian institutions on average reduces MFIs' interest rates. In contrast, economic globalization that embraces neoliberal institutions on average increases MFIs' interest rates. Moreover, the proportions of female borrowers and of poorer borrowers negatively moderate the relationship between social globalization and MFI interest rate, and positively moderate the relationship between economic globalization and MFI interest rate. This paper contributes to understanding how globalization processes can both ameliorate and exacerbate challenges of institutional voids in emerging and developing economies.